DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

Spot gold and silver prices fell sharply in early U.S. trading Thursday as renewed attacks on commercial shipping in the Strait of Hormuz drove crude oil higher. Rising Middle East tensions strengthened inflation concerns and expectations for additional Federal Reserve tightening.

At the latest verified morning reading, spot gold traded near $4,086.90 an ounce, down $53.40, or 1.29%. Spot silver stood near $55.790, down $2.070, or 3.57%, as bullion failed to benefit from lower Treasury yields and defensive demand.

The pressure reflected the prospect that interest rates could remain elevated as higher energy costs threaten to sustain inflation. Silver faced greater selling as borrowing costs and concerns about industrial activity compounded the weakness affecting gold.

New U.S. labor market figures offered another sign of economic resilience despite high borrowing costs and weaker housing activity. Weekly initial jobless claims declined by 6,000 to a seasonally adjusted 194,000 in the week ended Oct. 17, below expectations of approximately 200,000.

The previous week’s figure was revised upward to 200,000, while the four week moving average fell by 1,000 to 197,750. Continuing claims increased by 25,000 to 1.728 million in the week ended Oct. 10, and the insured unemployment rate remained unchanged at 1.1%.

The decline in new claims indicated that layoffs remained limited, although the increase in continuing claims suggested unemployed workers could be taking longer to secure new positions. The data reinforced the view that labor conditions had not weakened enough to force an immediate policy change.

Traders continued to assign a high probability to no change at the Fed’s Oct. 27 to Oct. 28 meeting. The likelihood of a 25 basis point increase in December remained around 86%, with stronger than expected claims data and rising energy prices supporting expectations for tighter policy.

Treasury yields nevertheless declined as renewed selling in technology stocks and escalating Middle East tensions increased demand for government bonds. The benchmark 10 year Treasury yield moved toward the 5.0% area, but that retreat provided little relief for gold.

The Federal Reserve remained in its premeeting communications blackout, leaving incoming economic data as the main influence on interest rate expectations. Thursday’s remaining schedule included the Conference Board’s September leading economic index and the Kansas City Fed manufacturing survey.

Friday’s calendar included preliminary October manufacturing and services purchasing managers’ indexes at 9:45 a.m. EDT, followed by the final University of Michigan consumer sentiment survey at 10 a.m. EDT. The Oct. 29 personal consumption expenditures inflation report will follow next week’s Fed meeting.

Conditions around the Strait of Hormuz deteriorated further after reports of additional attacks on commercial shipping and continued threats against U.S. military assets. Iran said seven oil tankers were damaged or caught fire overnight after being struck or encountering naval mines, though the full extent was not independently confirmed.

Iran’s Revolutionary Guard renewed warnings that U.S. bases could be targeted if American forces continued assisting commercial shipping through the strait. Washington increased its military presence, while diplomatic efforts to restart formal negotiations remained stalled and no agreement on reopening the shipping corridor was reached.

Tehran continued offering a conditional reopening in exchange for concessions that included ending the U.S. blockade of Iranian ports. Renewed Houthi attacks against Saudi Arabian infrastructure added concerns about escalation and the security of alternative energy export routes.

The escalation pushed Brent crude above $112.00 a barrel, its highest level since May, while WTI approached $100.00. Nymex WTI traded near $99.95 and Brent near $112.41, highlighting the risk that disrupted Gulf shipping could intensify global inflation pressure.

Risk sentiment weakened before the U.S. open, with technology stocks leading declines amid concerns about artificial intelligence investment, financing costs and corporate valuations. U.S. stock index futures pointed lower, while European and Asian equities also declined as investors weighed energy costs and restrictive monetary policy.

The U.S. dollar remained comparatively firm against major currencies, limiting gold’s ability to benefit from lower bond yields. Government bonds gained support as investors reduced equity exposure, reflecting competing concerns about slower growth and persistent inflation.

Technically, gold bulls need prices above the $4,124.25 to $4,143.48 resistance zone to ease selling pressure. Bearish targets begin with a break below support from $4,079.00 to $4,068.00, followed by $4,058.00 and $4,038.00.

Silver bulls face resistance from $56.920 to $57.390, with a sustained move through that zone needed to reverse the breakdown. Bears are targeting a break below $56.340, followed by deeper downside levels at $55.410 and $54.750.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.